Posted by John Doe
Most of us reach a point in life where we need more money than we have. Whether it’s to go to school or buy our first home, we end up taking out a loan, with the goal of eventually repaying it. Loans can help us succeed in our long-term goals whether that’s getting a house with a yard for our children to play in or qualifying for our dream career.
If you are a homeowner in Ontario, you may be eligible for an Ontario home equity loan. Before you consider getting a home equity loan in Ontario, you should know:
- What home equity is.
- How a home equity loan works.
- What you can use a home equity loan for.
At Mortgages Mortgages, we’re here for all your home equity loan needs in Ontario.
What is home equity?
Home equity is the difference between how much your home is worth and how much you owe on your mortgage.
So if your home is worth $500,000, and you owe $400,000 on your mortgage, then you have $100,000 in home equity. If you’ve had more of a chance to pay off your mortgage, say you only owe $50,000 on your $300,000 house, then you have $250,000 worth of home equity.
There are two ways to increase your home equity:
- Pay down your mortgage.
- Have the value of your home increase.
How does a home equity loan in Ontario work?
If you’re interested in a home equity loan in Ontario, then we’re here to help you at Mortgages, Mortgages. But first, we want to help you understand how an Ontario home equity loan works.
With Ontario home equity loans, you are using your house as collateral. This means that a home equity loan is a secured loan – one where the lender has a legal claim against a borrower’s assets.
The good news about getting a home equity loan in Ontario is that since it’s a secured loan, it will have a lower interest rate than if you had to apply for an unsecured loan, like a credit card.
If you are interested in getting a home equity loan in Ontario, the steps are as follows:
- You go through an approval process.
- If you are approved, you can borrow up to 80% of the appraised value of your home – minus the balance on your mortgage and any other loans secured against your home.
- The lender puts your home equity loan into your bank account.
- You repay the loan with fixed installment payments, as well as paying interest.
What can I spend my Ontario home equity loan on?
The great news about Ontario home equity loans is that you can spend them on whatever you want. These are some of the most common ways that people spend their home equity loans:
- Helping pay for higher education. Perhaps you’ve reached a point in time where you want to change careers or qualify for a higher-paying job in your current career. An Ontario home equity loan can help you pay for tuition and other expenses. Alternatively, you may have children who want to attend college or university but you don’t have anything saved up for them – so you could use your Ontario home equity loan to help them out.
- Paying for wedding expenses. Your son or daughter is finally getting married and you want to help make their special day memorable. A home equity loan can help with various expenses, from covering the cost of the reception to giving them a generous wedding gift to help them get off to a good start.
- Renovations and property upkeep. You love your home and don’t want to move. But perhaps your needs have changed, and you need more space. Or you just want to upgrade high-traffic areas like kitchens and bathrooms. A home equity loan is a great way to turn your house into your dream house.
- Paying down high-interest debt, such as credit card debt. If you have a lot of credit card debt, home equity loans can be a great way to pay it off. Since an Ontario home equity loan is a secured debt, the interest rate will be lower than the rate on your credit cards. Due to the reduced interest rate, you save more money than you would with other loans, allowing you to pay off your home equity loan faster.
How can Mortgages, Mortgages help me with Ontario home equity loans?
At Mortgages, Mortgages, we have a large variety of mortgages to suit our client’s needs. One type of Ontario home equity loan we have is a home equity mortgage.
We understand that you don’t always have enough cash on hand to do the things you want to in life, whether that’s upgrading your house or helping your kids with their education. That’s why we’re here to help you with an Ontario home equity loan (in the form of a home equity mortgage) to help make sure you and your family can achieve their dreams.
With a home equity mortgage, we can help you access the equity in your biggest asset – your home. A lien is put against your home and then we can lend you an amount based on how much of your mortgage you’ve paid off.
An Ontario home equity loan in the form of a home equity mortgage is quite similar to a second mortgage in that it enables you to use your home as collateral in exchange for a lump sum of cash at a low interest rate. You will also need to have good credit to qualify for an Ontario home equity loan with Mortgages, Mortgages.
Get Out Of Debt With An Ontario Home Equity Loan
Now you know what an Ontario home equity loan is and the many different ways you can use it, whether that’s to pay for higher education, a wedding or paying off high-interest credit card debt.
At Mortgages, Mortgages, we are proud to offer Ontario home equity loans to help you pursue your dreams, whatever they may be.